Covenant Logistics Group, Inc. (NASDAQ/GS: CVLG), a transportation and logistics services provider, announced Friday its decision to transfer the listing of its Class A common stock to the New York Stock Exchange (NYSE) from The NASDAQ Global Select Market.
The transition is scheduled to take place at the opening of the market on Tuesday, August 6, 2024, with the company retaining its current ticker symbol, CVLG.
The company's Class A common stock will continue to trade on NASDAQ until market close on Monday, August 5, 2024.
David R. Parker, Chairman and Chief Executive Officer of Covenant, expressed confidence in the move, stating that the NYSE's trading platform will enhance the company's visibility and engagement.
Covenant Logistics provides a range of services including asset-based expedited and dedicated truckload capacity, and asset-light warehousing, transportation management, and freight brokerage capabilities across the United States. The company also has an affiliation with Transport Enterprise Leasing, which offers revenue equipment sales and leasing services to the trucking industry.
Meanwhile, Covenant Logistics Group has reported encouraging results for the second quarter of 2024. The company experienced a 5.3% increase in consolidated freight revenue to $256.5 million, alongside a 15% jump in adjusted operating income to $18.7 million. The Dedicated fleet segment achieved a record low adjusted operating ratio of 90.9, with an average tractor count rising by 10.9%. However, the Expedited segment faced a profitability decline due to cost pressures.
InvestingPro Insights
As Covenant Logistics Group, Inc. (NASDAQ/GS: CVLG) prepares to shift its Class A common stock listing to the NYSE, investors and market watchers are closely observing the company's financial health and stock performance. Covenant's market capitalization stands at a solid $720.63 million, reflecting investor confidence in the firm's business model and future prospects.
InvestingPro data indicates a P/E ratio of 16.82, which adjusts to 16.15 when looking at the last twelve months as of Q2 2024. This valuation metric suggests that while the stock is not the cheapest in the market, it is reasonably priced relative to earnings. Additionally, the company's revenue for the last twelve months as of Q2 2024 reached $1.128 billion, despite a slight decline of 1.72% in revenue growth during the same period. Nevertheless, the quarterly revenue growth in Q2 2024 was positive at 4.92%, hinting at potential resilience and a turnaround in the company's revenue trajectory.
InvestingPro Tips highlight that Covenant Logistics is experiencing a significant return over the last week, with a 1-week price total return of 8.38%. Moreover, the stock's performance has been robust over longer periods, with a 3-month price total return of 22.67%. These returns underscore the company's strong stock performance in recent times, which could be attractive to investors looking for momentum in the market.
For investors seeking more in-depth analysis and additional InvestingPro Tips, such as the implications of Covenant's cash burn rate and whether the RSI suggests the stock is in overbought territory, you can find a wealth of information on InvestingPro. There are 9 additional tips available, which can be accessed with the use of coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Visit https://www.investing.com/pro/CVLG to explore these insights and make more informed investment decisions.
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